place–in other words, the software and energy data need to be
periodically verified to ensure that the EMS is, indeed, improving
a building’s operations. “This is something that should be done
throughout the lifetime of the building,” Petty added.
Commissioning also sounds the warning if something is wrong
with the system. “Maybe you’ll see that there is a stuck damper
and it’s costing you $17.70 per day,” Rechtsteiner says. “Now
you can take that information and integrate with the systems, and
it can tell you what’s coming out of alignment” as well as how to
correct it.
“If a building maintenance system is supposed to maintain an
interior temperature of 69 degrees, the software program should
be running that,” Petty adds. “If the program isn’t doing that, it’s
time to correct whatever needs to be corrected.”
Sutton provides an example of how EMS commissioning and
data collection works. Structures like BOMA’s Austin building
have systems that pulse data in one-second intervals from about
400 different points through the property. This allows building
managers to see where there might be an anomaly or a problem.
“This is something we can address immediately,” Sutton says,
“rather than waiting until we get the electric bill and try to figure
out who left the window open.”
Even with such technical advances, the human element can
complicate matters. Partner Energy’s Liou shares a story con-
cerning one of his company’s clients and its ownership of four
identical buildings, which were constructed at the same time,
and maintained in the exact same way. Three of those buildings
qualified for a high score under the Energy Star ratings system,
while the remainder did not. “We were scratching our heads,
wondering how this building that had the same engineers and
materials, was so different,” Liou says. After digging through data
from the building’s control system, the team found that, six
months prior, someone had reset the EMS schedule to the man-
ual setting to accommodate an event. This individual had then
forgotten to restore the schedule’s original settings.
Most EMS experts are adamant that training is essential to
avoid scenarios similar to Liou’s, and to ensure that the thou-
sands of dollars invested such a program provides a good rate of
return. “Companies spend hundreds of thousands of dollars for
energy systems in their buildings only so the system gets treated
like a glorified time clock,” Liou said. “Training is important, as is
proper installation and commissioning.”
In fact, it’s essential to find vendors and consultants who
understand that education is necessary and that EMS design,
installation and maintenance is not treated as a do-it-yourself
job. “You need to talk to professionals and engineers that spe-
cialize in building automation systems,” says Petty.
But finding that right vendor or consultant might be difficult.
Rechtsteiner points out that many vendors have great marketing packages and talk great games, but lack substance behind
their claims.
“It’s a confusing time right now, with so many different ven-
dors chasing the same holy grail of optimizing existing build-
ings,” Rechtsteiner says. “It’s important that owners and man-
agers research and take a look at who’s doing what.”
Furthermore, says JLL’s Andronaco, don’t be attracted to a
consultant or vendor’s promises. “It’s important you hire the
right consultant; one that has a feel not only for what the build-
ing needs, but also who is willing to listen to management and
tenant needs,” he says.
Liou adds that understanding what an owner wants from an
energy management system is also critical to its efficiencies.
A QUARTERLY SUPPLEMENT FROM REAL ESTATE FORUM
ACCENTURE... continued from page 81
Beyond the economy, there is another threat: the alternative workplace strategy movement. A January Cisco
study reveals virtual workplaces are en force and the
demand is growing in the face of innovative mobile technologies that allow employees to work from anywhere.
And CoreNet Global is predicting the “Bring Your Own
Technology” trend will impact the size and design of the
corporate office. All this makes tenant retention vital to
maximizing occupancy and profitability.
“From a tenant retention standpoint, we have to remain
on the cutting-edge,” Traeger says. “You don’t want
someone looking at another building because it has the
newest perk. Buildings that don’t innovate will have to
drop their asking rates; we plan to grow ours.”
The average asking rental rate for class A office space
in the Minneapolis metro is $13.59. Accenture Tower’s
asking rent range runs from $14 to $20. At a time when
rates have been flat or slightly declining, Accenture
Tower is incrementally raising rents and defying market
norms.
Kelly says existing tenants are responding well—re-
newals are healthier than in previous years. And Traeger
figures the LEED certification alone allows Accenture
Tower to fetch an additional 50 cents per square foot over
non-LEED buildings in the Minneapolis CBD. That said,
Traeger understands CBRE can only push so far. Although
the building is aiming to drive rents toward the higher end
of the spectrum, “the market is the market.”
Of course, it’s still a tenant’s world in Minneapolis, and
free rent, aggressive lease rates and notable tenant
improvement packages are still the norm. With at least
$12 million invested in a three-phase improvement proj-
ect over the past several years, ownership is in a good
position to drive profitability by offering fewer conces-
sions than competing office buildings.
“The standard here used to be one month of free rent
for every year of a new lease term,” Traeger says.
“We’re seeing that tone down. You might only get three
months of free rent on a five-year deal today. A better
product helps you achieve that. And we haven’t even
started phase-four improvements yet, which center on
elevator upgrades. Ownership is committed to investing
in value-adds.”
At the end of the day, Kelly is confident that the ongo-
ing investment will increase occupancy at a pace that
outperforms the market, drive rent increases on new
deals and renewals, spur faster lease-up times and result
in overall tenant satisfaction that will help retention for
years to come.
“Tenant retention has never been a problem,” Kelly
says. “Now, the underwriting percentage is going to skyrocket. This building was once perceived as off-the-beaten path but now, with the direct skyway link and all
the amenities, tenants don’t even need to leave the building because everything is right here. As we enter a recovering market, we’re sure to capture more than our fair
share of tenants.”
FEBRUARY/MARCH 2012 Better Buildings 85
